MIRA INFORM REPORT

Report Date :

08.07.2008

IDENTIFICATION DETAILS

Name :	ANUVI CHEMICALS LIMITED
Registered Office :	205, Narmada, Laxmi Industrial Premises, Pokhran Road No. 1, Vartak Nagar, Thane – 400 606, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	26.04.1988
Com. Reg. No.:	11-47161
CIN No.: [Company Identification No.]	U24110MH1988PTC047161
TAN No.: [Tax Deduction & Collection Account No.]	PNEA07414B
PAN No.: [Permanent Account No.]	AAACA1007G
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturers of Speciality Ecofriendly Products and Customised Solutions.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 41760
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	205, Narmada, Laxmi Industrial Premises, Pokhran Road No. 1, Vartak Nagar, Thane – 400 606, Maharashtra, India
Tel. No.:	91-22-25855400/ 25855379
Fax No.:	91-22-25855714
E-mail :	sales@anuvichem.com anuvi@vsnl.com
Website :	http://www.anuvichem.com
Factory / Research:	W 71 B and Part, MIDC Industrial Area, Badlapur – 421503, District – Thane, Maharashtra, India
Tel. No.:	91-251-2690418
Fax No.:	91-251-2690769

DIRECTORS

Name :	Dr. Kanaklata Krishnakumar Saxena
Designation :	Chairman and Managing Director
Address :	25 E/4, Model Town, Balrajeshwar Road, Mulund, Mumbai-400080, Maharashtra, India
Qualification :	M.Sc (Cjhem), Gold Medalist, Ph.D
Date of Birth/Age :	01.11.1945
Date of Appointment :	26.04.1988
Director’s Profile :	Various Research Papers have been Published in her name renowned Indian and Foreign Journals.
Name :	Mr. Rajeshkumar Anandlal Saxena
Designation :	Director
Address :	25 A, Mini Land Tank Road, Bhandup, Mumbai-400078, Maharashtra, India
Qualifications :	M.A. (Eco)
Date of Birth/Age :	10.10.1942
Experience :	2 Decades of Experience in Factory Administration and Human Resource Management.
Date of Appointment :	26.04.1988
Name :	Mr. Vinod Chintamani Malshe
Designation :	Executive Director
Address :	1, Univercity Staff Quarters, UDCT Campus, Matunga, Mumbai – 400019, Maharashtra, India
Qualifications :	M.Sc (Tech), Ph.D (Tech)
Date of Birth/Age :	28.02.1947
Experience :	30 Years in Research and Academics.
Date of Appointment :	14.03.2008
Director’s Profile :	Retd. Head of the Department of Surface Coating Technology, UICT, Mumbai.
Name :	Dr. Rajan Saxena
Designation :	Executive Director, IIM, Indore
Address :	27-A-31, Takshila Apartments, Mahakali Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Date of Birth/Age :	17.10.1949
Date of Appointment :	14.03.2008
Director’s Profile :	Sr. Advisor to Chancellor and Distigunished Professor – NMIMS University, Mumbai.
Name :	Dr. Krishana K. Saxena
Designation :	Chief Executive Officer, (Chairman)
Address :	25 E/4, Model Town, Balrajeshwar Road, Mulund, Mumbai-400080, Maharashtra, India
Qualifications :	M.Sc, M.Tech, Ph.D (I.I.T. Kgp)
Director’s Profile :	Indian Resins Manufacturers Association, 2000-03, Actively associated with many professional bodies and reputed academic institutions.
Name :	Mr. Vivek Saxena
Designation :	Director
Qualifications :	B.Sc (Hons.), M.M.S. (Marketing), M.M.S. (Finance)
Experience :	A Decade of Experience in International Marketing and Sales.
Name :	Mr. R. Pais
Designation :	Vice president Operations
Qualifications :	B.Sc (Hons.), M.Sc (Chem)
Experience :	30 Years of Experience in Plant Operations and Management.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 01.04.2007

Names of Shareholders	No. of Shares
Dr. Kanaklata K. Saxena	6309
Mr. Rajeshkumar A. Saxena	1437
Mr. Viviconx	1
Mrs. Sonal Vivek Saxena	1
Mrs. Anupriya Amol Jahagidar	1
Mr. Amol Santosh jahagidar	1
Mr. Vivek Krishnakumar Saxena	1
Mr. Satish Chandra	250
Total	8001

BUSINESS DETAILS

Line of Business :	Manufacturers of Speciality Ecofriendly Products and Customised Solutions.
Products :	Copolymer Resin Emulsion

GENERAL INFORMATION

No. of Employees :	About 20
Bankers :	The Thane Janata Sahakari Bank Limited Vartak Nagar, Thane (West), Thane-400602, Maharashtra, India

Banking Relations :	Satisfactory
Auditors :
Name :	Desai Saksena and Associates Chartered Accountants
Address :	1^st Floor, Laxmi Building, Sir P.M.Road, Fort, Mumbai-400001, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000	Equity Shares	Rs. 100/- each	Rs. 2.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,001	Equity Shares	Rs. 100/- each	Rs. 0.800 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.800	0.800
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		7.552	5.664
4] (Accumulated Losses)		0.000	0.000
NETWORTH		8.352	6.464
LOAN FUNDS
1] Secured Loans		5.253	10.004
2] Unsecured Loans		1.564	1.822
TOTAL BORROWING		6.817	11.826
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		15.169	18.290
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.752	4.578
Capital work-in-progress		1.105	1.105
INVESTMENT		0.088	0.088
DEFERREX TAX ASSETS		0.334	0.230
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.102	12.683
	Sundry Debtors	15.708	18.907
	Cash & Bank Balances	0.840	1.407
	Other Current Assets	0.572	0.562
	Loans & Advances	3.153	2.706
Total Current Assets		29.375	36.265
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	16.343	22.287
	Provisions	3.142	1.689
Total Current Liabilities		19.485	23.976
Net Current Assets		9.890	12.289
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		15.169	18.290

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005
Debt Equity Ratio (Total Liability/Networth)	3.15	5.54
Current Ratio (Current Asset/Current Liability)	1.51	1.51

LOCAL AGENCY FURTHER INFORMATION

Form 8

Name of the company	ANUVE CHEMICALS PRIVATE LIMITED
Presented By	BRANCH MANAGER, THE JANATA SAHAKARI BANK LIMITED, MAIN BRANCH
1) Date and description of instrument creating the change	07.12.2000 Loan/Cash Credit Agreement, Letter of Lien and set off, promissory note, hypothecation of book debts. All theese agreement have been executed to create a single charge.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Bill discounting of Sion Paints Limited
4) Gist of the terms and conditions and extent and operation of the charge.	Bill discounting facility of Rs.2.000 millions for 12 months for period @ 13% interest Per Annum
5) Name and Address and description of the person entitled to the charge.	The thene Janata Sahakari Bank Limited Deena Dayal Bhuvan, Jambhali Naka, Thane

Form 8

Name of the company	ANUVE CHEMICALS PRIVATE LIMITED
Presented By	Mr. Rajsh Saxena, Director
1) Date and description of instrument creating the change	Loan agreement Hypothecation of Goods, Plant and Machinery and debts
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.800 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all present and future stocks of finished goods, stock of raw mteial and semi finished goods and consumable stores and spoares and also all tangible moveable machinery stores, spares, plant machines and also book debts, outstanding decreees, monies receivables, claiums and bills etc. more partivclultroly described as the securites in the agreement
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @ 3.5% p.a. over the Bank PLR subject tominimum of 8.5% p.a. Margin 10% Penal interest @ 2% pa.a in case of defaults Charge to cover all outstanding sums, interests, costs and charges payabke by the company to the Bank
5) Name and Address and description of the person entitled to the charge.	The Thane Janata Sahakari Bank Limited Vartak Nagar Branch, Thane

As Per Website Details

History

Since 1989…..

v Anuvi has been developing Innovative Speciality products and Customized Solution for Paints, Water Based Inks, Leather, Flocked textiles and Construction.

1989-94

v Engaged in the manufacture of specialty customised polymer emulsion for a Leading Exterior Paint manufacturing company.

1995

v New Era for ANUVI : ACPL started marketing its own products

1997 - RESIKON Construction Chemical Systems was launched

v Bulk manufacturer

v In house technical capabilities

v Easily customize products

v Cost effective yet excellent quality

Today - 2 Divisions, 5 Brands

v Industrial Emulsions

v Construction Chemicals

Clientele

v Clients All Over India

v Large corporate manufacturers

Profile

Subject is a specialty chemicals and materials company focused on developing, manufacturing and selling value-added products. The products serve a diverse range of end markets including paint, non-woven textiles, leather, and construction.

They use the technology and application development expertise to create chemical and material solutions that are formulated to perform specific and important functions in the finished products of the customers.

The leadership stems from the commitment to the customers. They are dedicated to helping them achieve their business objectives by developing high-quality products that improve their products and manufacturing process performance. Subject network of applications specialists provides cutting-edge technical support to customers around the world.

Technical Collaboration

Subject has Swedish technical collaboration for speciality polymers used in construction industry. Technical superiority enables us to produce global quality construction chemicals.

Business

Subject is one of India’s largest manufacturers of Speciality Ecofriendly products and customised solutions for various industries like paint, non-woven textiles, leather, construction etc. Intimate knowledge about polymers and intense interaction with user has enabled us to log a large tally of products.

The products reach almost all over India and neighboring countries. Anuvi is amongst the few Indian chemical companies with a single-minded focus on the marketplace and brand building. ANUVI has specific market focus with an identified product pipeline for each market of the world.

At Subject, service means understanding each customer's needs and providing solutions in a timely manner. The ISO-certified facilities manufactures a variety of products to serve a broad range of applications.

Through an unwavering focus on Quality, Commitment and Delivery, they have charted the way to success in the operations and have won the admiration of the customers. The success is built on the strong pillars of innovation, quality, and dedicated customer service. By incorporating these and other business strengths, they have boosted the capabilities to maintain the leading edge in the industry & earn the loyalty of the customers.

Manufacturing

v Factory situated about 70 KM from Mumbai in the well developed industrial township of Badlapur - 421503, District Thane, Maharashtra.

v State of the art manufacturing facilities, managed by qualified engineers.

v Off the shelf availability of finished products.

v Proximity to JNPT port is an advantage for exports.

Research and Development

Subject is pivotal strength is technology and R and D. With more than four decades of rich experience in polymer and allied fields, Dr. Krishna K. Saxena and Prof. V C Malshe marshal R and D activities adroitly.

Subject is a dedicated fully equipped Quality Assurance Laboratory with a team of specialists and chemists ensures process control and quality standards. Subject has a strong association with premier academic and research institutions. Their professional assistance is availed of in product development and application testing.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

The market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

The Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 43.12
UK Pound	1	Rs. 85.08
Euro	1	Rs. 67.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, they have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions